Major Programs

Major enhancement programs, such as the seismic upgrades at SFGH and renovations of the City’s parks, are funded with long-term debt and paid for over time. Other major programs, such as street resurfacing, receive debt financing in challenging economic times or when significant improvements are needed. However, in order to maintain a strong financial position and have a low impact on taxpayers, the Capital Planning Committee, Mayor, and the Board have adopted a set of policies to limit the issuance of long term debt:

The City will not increase the property tax rate above 2006 rates. This is possible, even with the program below, because the City issues new debt as it pays off old debt.

The City’s General Fund debt service payments are limited to 3.25% of discretionary revenues. This limits the impact of debt on the General Fund and other services funded with the General Fund.

The Capital Plan’s General Fund debt program complies with the above limitations while making significant investments in the City’s future.